CHAPTER ONE
1.1 INTRODUCTION
Competition is a condition of rivalry and very important characteristics of business behaviours especially in the marketing of soft drinks. In Nigeria manufacturers of soft drinks struggle among themselves for the attainment of a market share, its defense and its increase in order to remain in business particularly under a depressed economy like Nigeria. An increase in market share is an important measure of competitive success and the struggle for market share goes on endlessly and relentlessly. However, depending on the market circumstances, the nature of the competition can either be perfect or imperfect.
Perfect competition exists when no single seller or buyer is large enough or strong enough to exercise an appreciable influence over the market. The conditions that create perfect competition may include a large number of buyers and sellers, the presence of homogenous or no differentiated products, freedom of market entry and exit, accurate knowledge on the part of buyers and seller etc. imperfect completion in any market where one or more of the conditions of perfect competition listed above are absent, and the competition is principally characterized by limited number of buyers and sellers, and the existence of differentiated products. The opportunity to compete is a basic marketing opportunity. Almost every marketing effort has its direct or indirect goal for the creation of a different advantage.
Moreover, it is impossible to market effectively without a willingness to compete aggressively. Beside the broad classification of competition also exists amongst sales force by giving them extra incentive for increasing their sales by stimulating their competitive instinct. In this regard the competition seeks to achieve among other things, increase in total sales, prevention of boredom, to stimulate interest, develop sales ability etc. based on the perspective of competition in relation to the rivalry that exist among similar firms to the sales force induce competition.
This study is inspired to examine the nature and effect of competition on sales performance of soft drinks in Kaduna metropolis with specific reference to seven-up Bottling Company Plc Kaduna. This organisation is chosen for this on the basis of its participating in the marketing of 7uP brand and other assorted soft drinks which are in competition with other popular brands such as Coca-cola, fanta, Krest, Soda water etc, and the fact that sales force of the company with their counterpart in similar firms compete aggressively for increased sales and market share in the area under study.
- STATEMENT OF THE PROBLEM
The production and marketing of soft drinks and associated products have been intensified by both indigenous and foreign manufacturers.
Consequently, an intense competition ensured for the attainment of significant market share, its defense and its increase in order to survive and grow in a depressed economy of Nigeria. An increase in market share is an important determinant of the success of markets efforts by manufacturers resulting in the design of appropriate marketing strategies consisting of stimulating completion among the sales fore to facilitate the attainment of the objective of the organisation in a more effective and efficient manner. However, marketing failures are inevitable if the nature of competition entered into is not properly understood by the sales force management in order to device appropriate marketing strategy to maximize profit by inducing increased in sales. This study is an attempt to examine the nature of the competition existing in the marketing of soft drinks and evaluate its effect on the sales performance of seven0-up products which are currently under intense competition with other manufacturers across the country. This study is confined to Kaduna metropolis where the researcher assorted soft drinks including seven-up products which stand competitively unique in terms of flavor, quality, quantity and price. The most significant question to address include:
- How does seven-up products stand in terms of sales revenue generation particularly in competition with other brands of soft.
- To what extend does the competition among sales force affects the sales performance of the products?
- What is the nature of the competition in soft drinks industry generally?
- OBJECTIVES OF THE STUDY
The study on the nature and effects of competition on sales performance of soft drinks with special reference to seven-up products seek to achieve the following specific objectives.
- To identify the popular manufacturers of soft drinks and associated product within Kaduna metropolis.
- To examine consumer preferences among different brands of soft drinks marketed in Kaduna.
- To find out the nature of the competition in the soft drinks industry whether it is perfect or imperfect.
- To evaluate the sales trends or performance of the products over a period of 5 years.
- To help seven-up company with appropriate marketing strategies to improve sales performance under competition.
- STATEMENT OF HYPOTHESES
Hypothesis is tentative to identified problem. Therefore, the hypotheses used in this work include:
HO: That the popular manufacturers of soft drinks and associated product within Kaduna metropolis was not identified.
HI:That the popular manufacturers of soft drinks and associated product within Kaduna metropolis was identified.
HO: There is no examine consumer preferences among different brands of soft drinks marketed in Kaduna
HI: There is an examine consumer preferences among different brands of soft drinks marketed in Kaduna.
HO: That there is no interest of finding out the nature of the competition in the soft drinks industry whether it is perfect or imperfect.
HI: That was an interest of finding out the nature of the competition in the soft drinks industry whether it is perfect or imperfect.
HO: That they don’t evaluate the sales trends or performance of the products over a period of 5 years.
HI:That they evaluate the sales trends or performance of the products over a period of 5 years.
- SCOPE AND LIMITATIONS OF THE STUDY
In the course of undertaking this study, a number of constraints were faced by the researcher. This includes the following:
- Finance: Due to non availability of adequate funds to undertakes this study on comparative basis covering some manufacturers in order to fully come up with the real nature of competition and its effects on sales performance, the researcher limits the survey to seven-up company. The high cost of stationary and labour have incapacitated the intended in-depths coverage of the subject matter of this study.
- Time: Due to the series of academic activities in the department, the time allotted to this important task was too short particularly in the take of the date line for the submission of this work.
- Respondent Attitude: Although this study is mainly for academic discourse. Some respondents amongst the management staff were on compromising apprehensive and were reluctant to reveal some vital data for this study which they consider to top secret. Inspite of these constraint the main objectives of this study were successfully achieved.
1.6 SIGNIFICANCE OF THE STUDY
This study is in partial fulfillment for the award of Nationals Diploma
Business studies. The significant of this study, lies essentially on its
contribution to the existing knowledge particularly in the area of marketing
competition and the immense benefits it holds for individuals and
marketing organisation. One of the direct beneficiaries of the finding of
This study is the management of seven-up Bottling company Nigeria
limited. This study is an important tool to the organisation as it reveals a great deal about the company’s product in revelation to its marketing performance and above all, the marketing strategies and recommendations put forward by the research for the improvement, similarly, other competitors and prospective investors will also find this project very informative particularly as it reveals the nature of competition and its effects on sales performance of the company under study.
Finally the students of Business studies at National Diploma and High National Diploma levels will certainly find this project a very useful and rich source of relevant reading materials particularly, to those who need current literature review material on marketing competition.
1.7 DEFINITION OF TERMS
In this study, some words phrases and abbreviation used in the context of this research work are explained below:
Marketing: This is the management process responsible for identifying, anticipating, and satisfying customer requirement profitably.
Management: The art of planning, directing, organizing, staffing, controlling and decision making.
Questionnaire: This is a specially designed form containing series of
question with alternative or blank space to be complete by respondents
returned.
Potential market/customer: This constitutes the number of customers
who will be wiling and have the purchasing power to buy a product when it is
offered for sale.
Competition: A condition of rivalry or the existence or rival products
within the same market.
Product: A combination of tangible goods and services.
Marketing Research:This is concerned with the collection and luation of data relevant to any marketing problem.
Product Research: This aspect deals with the design, developing, ing of new products modification of existing ones, forecasting of likely
friends in consumer preferences. In such areas as staffing, branding,
packaging, quality etc.
Super Market: These are self-services stores that carry a full line of irted food, beverage and other essential products.
1.8 ORGANIZATION OF THE WORK
Apparently, chapter one which is the introduction explain how the marketing concept whose major focus is customer satisfaction at a profit to the firm is so obligations in the marketing classroom that the unquestioning student of marketing is led to believe that firms who fail to employ it are business criminal.
These consist of introduction, statement of the problems, objectives of the study, statement of hypotheses, Scope and limitation of the study, significance of the study, definition of terms, organization of work, and end of chapter references.
Subsequently, chapter two which is the literature review will take into cognizance the introduction, the nature of competition, competition and custumer orientation, the condition of orientation, state of product development, competitive behaviour and the life cycle and marketing approach to competition.
Furthermore, chapter three which is the research methodology touch the following introduction, research method, justification for approach use, research instrument use, research population and sample size, Sampling procedure employed, justification for sample and procedure employee and statistic techniques employed.
More so, chapter four which is presentation and analysis of data, discussion of the result and new finding.
In conclusion, chapter five summary of the study, the conclusion, recommendations, bibliography and the references.
Indeed, these mentioned point in the content of these very project that the research embarked upon just arrange systematically thus the way it was been mentioned above.
REFERENCE
Lucas A. O. and Gilles H. M. preventive medicine for the tropics 3rdedition, Bounty Press limited 1997 page 244.
Asuzu M. occupational health, a summary introduction & outline of
principles – Afrika Link Books – 2002
- Walton & D. Urdon, Environmental Health – Africa news letter on
environmental health 1990.
Mc Wane, Death on the job (internet).
Asuzu M., health and safety at workplace in Nigeria, problems and
prospects, – Africa news letter on occupational health and safety 1998
Asuzu, M. the development and state of health and safety in the
workplace in west Africa perspective from Nigeria, west African journal of
medicine 1990; 15, 141.
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